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Taking care of your own: Ethnic and religious heterogeneity and income inequality

Oguzhan Dincer and Peter J. Lambert ()
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Peter J. Lambert: University of Oregon

No 48, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: Using recently developed indices of fractionalization and polarization, we analyze the direct and indirect effects of ethnic and religious heterogeneity on income inequality and on welfare programs across US states. We find strong evidence (1) that there is a positive relationship between ethnic and religious polarization and income inequality and an inverse-U shaped relationship between ethnic and religious fractionalization and income inequality; and (2) that there is a negative relationship between ethnic and religious polarization and monthly welfare payments under the AFDC/TANF scheme, and a U-shaped relationship between ethnic and religious fractionalization and the AFDC/TANF payments.

Keywords: Ethnic and Religious Heterogeneity; Income Inequality (search for similar items in EconPapers)
JEL-codes: D31 J15 O15 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2006
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Citations: View citations in EconPapers (5)

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